Bharat Heavy Electricals Limited

NSEI:BHEL Stock Report

Market Cap: ₹787.1b

Bharat Heavy Electricals Valuation

Is BHEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BHEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BHEL (₹227.94) is trading above our estimate of fair value (₹21.78)

Significantly Below Fair Value: BHEL is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BHEL?

Key metric: As BHEL is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for BHEL. This is calculated by dividing BHEL's market cap by their current revenue.
What is BHEL's PS Ratio?
PS Ratio3.1x
Sales₹258.33b
Market Cap₹787.12b

Price to Sales Ratio vs Peers

How does BHEL's PS Ratio compare to its peers?

The above table shows the PS ratio for BHEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.2x
SUZLON Suzlon Energy
11.4x38.5%₹849.1b
POWERINDIA Hitachi Energy India
8.3x25.7%₹497.1b
522275 GE Vernova T&D India
12.7x27.9%₹484.0b
500002 ABB India
12.4x16.2%₹1.4t
BHEL Bharat Heavy Electricals
3.1x20.1%₹787.1b

Price-To-Sales vs Peers: BHEL is good value based on its Price-To-Sales Ratio (3.1x) compared to the peer average (11.2x).

Price to Sales Ratio vs Industry

How does BHEL's PS Ratio compare vs other companies in the IN Electrical Industry?

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
SHERA Shera Energy
0.4xn/aUS$59.17m
512296 Bhagyanagar India
0.2xn/aUS$37.32m
532930 BGR Energy Systems
0.3xn/aUS$31.51m
CORDSCABLE Cords Cable Industries
0.3xn/aUS$29.79m
BHEL 3.1xIndustry Avg. 3.5xNo. of Companies17PS02.44.87.29.612+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: BHEL is good value based on its Price-To-Sales Ratio (3.1x) compared to the Indian Electrical industry average (3.5x).

Price to Sales Ratio vs Fair Ratio

What is BHEL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BHEL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.1x
Fair PS Ratio5.2x

Price-To-Sales vs Fair Ratio: BHEL is good value based on its Price-To-Sales Ratio (3.1x) compared to the estimated Fair Price-To-Sales Ratio (5.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BHEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹227.94
₹231.82
+1.7%
47.6%₹425.00₹72.00n/a17
Nov ’25₹241.97
₹235.12
-2.8%
47.7%₹425.00₹72.00n/a17
Oct ’25₹280.45
₹241.69
-13.8%
48.4%₹425.00₹72.00n/a16
Sep ’25₹290.55
₹233.38
-19.7%
48.6%₹425.00₹72.00n/a16
Aug ’25₹308.50
₹213.76
-30.7%
54.7%₹425.00₹72.00n/a17
Jul ’25₹302.40
₹207.72
-31.3%
53.4%₹400.00₹72.00n/a18
Jun ’25₹298.90
₹206.72
-30.8%
54.3%₹400.00₹55.00n/a18
May ’25₹281.70
₹168.00
-40.4%
48.4%₹301.00₹55.00n/a17
Apr ’25₹253.75
₹160.32
-36.8%
51.2%₹300.00₹38.00n/a19
Mar ’25₹235.30
₹156.68
-33.4%
49.3%₹300.00₹38.00n/a19
Feb ’25₹227.50
₹127.33
-44.0%
59.8%₹300.00₹34.00n/a18
Jan ’25₹198.15
₹101.58
-48.7%
63.3%₹230.00₹34.00n/a19
Dec ’24₹170.50
₹90.80
-46.7%
53.5%₹165.00₹34.00n/a20
Nov ’24₹121.55
₹87.45
-28.1%
56.1%₹165.00₹34.00₹241.9720
Oct ’24₹131.00
₹83.85
-36.0%
59.1%₹165.00₹34.00₹280.4521
Sep ’24₹136.15
₹72.36
-46.9%
54.8%₹158.00₹34.00₹290.5519
Aug ’24₹104.70
₹64.64
-38.3%
45.7%₹125.00₹32.00₹308.5020
Jul ’24₹87.65
₹61.49
-29.8%
43.9%₹110.00₹32.00₹302.4020
Jun ’24₹82.00
₹59.62
-27.3%
42.3%₹110.00₹32.00₹298.9019
May ’24₹78.40
₹56.20
-28.3%
45.4%₹110.00₹30.00₹281.7019
Apr ’24₹70.05
₹51.58
-26.4%
42.3%₹100.00₹30.00₹253.7518
Mar ’24₹72.80
₹51.58
-29.1%
42.3%₹100.00₹30.00₹235.3018
Feb ’24₹75.60
₹50.50
-33.2%
43.2%₹100.00₹30.00₹227.5019
Jan ’24₹79.20
₹49.71
-37.2%
44.0%₹100.00₹30.00₹198.1519
Dec ’23₹84.65
₹49.61
-41.4%
44.3%₹100.00₹30.00₹170.5019
Nov ’23₹76.05
₹45.77
-39.8%
44.6%₹100.00₹25.00₹121.5520

Analyst Forecast: Target price is less than 20% higher than the current share price.

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